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  1. Transactions on Internet Technology (TOIT)
  2. ACM Transactions on Internet Technology (TOIT) : Volume 14
  3. Issue 2-3(Special Issue on Pricing and Incentives in Networks and Systems and Regular Papers), October 2014
  4. Economic Viability of Paris Metro Pricing for Digital Services
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ACM Transactions on Internet Technology (TOIT) : Volume 16
ACM Transactions on Internet Technology (TOIT) : Volume 15
ACM Transactions on Internet Technology (TOIT) : Volume 14
Issue 4(Special Issue on Foundations of Social Computing), December 2014
Issue 2-3(Special Issue on Pricing and Incentives in Networks and Systems and Regular Papers), October 2014
Special Issue on Pricing and Incentives in Networks and Systems: Guest Editors' Introduction
Distributed Content Curation on the Web
Influence of Search Neutrality on the Economics of Advertisement-Financed Content
Regulation of Off-Network Pricing in a Nonneutral Network
Economic Viability of Paris Metro Pricing for Digital Services
Adoption of Bundled Services with Network Externalities and Correlated Affinities
Understanding Quota Dynamics in Wireless Networks
Demand-Invariant Price Relationships and Market Outcomes in Competitive Private Commons
Approximation Algorithms for Secondary Spectrum Auctions
Revenue Guarantees in the Generalized Second Price Auction
Is the Price of Anarchy the Right Measure for Load-Balancing Games?
Secure Team Composition to Thwart Insider Threats and Cyber-Espionage
Economic Model-Driven Cloud Service Composition
Recommendation and Weaving of Reusable Mashup Model Patterns for Assisted Development
Issue 1(Special Issue on Event Recognition), July 2014
ACM Transactions on Internet Technology (TOIT) : Volume 13
ACM Transactions on Internet Technology (TOIT) : Volume 12
ACM Transactions on Internet Technology (TOIT) : Volume 11
ACM Transactions on Internet Technology (TOIT) : Volume 10
ACM Transactions on Internet Technology (TOIT) : Volume 9
ACM Transactions on Internet Technology (TOIT) : Volume 8
ACM Transactions on Internet Technology (TOIT) : Volume 7
ACM Transactions on Internet Technology (TOIT) : Volume 6
ACM Transactions on Internet Technology (TOIT) : Volume 5
ACM Transactions on Internet Technology (TOIT) : Volume 4
ACM Transactions on Internet Technology (TOIT) : Volume 3
ACM Transactions on Internet Technology (TOIT) : Volume 2
ACM Transactions on Internet Technology (TOIT) : Volume 1

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Economic Viability of Paris Metro Pricing for Digital Services

Content Provider ACM Digital Library
Author Chiu, Dah-Ming Chau, Chi-Kin Wang, Qian
Copyright Year 2014
Abstract Nowadays digital services, such as cloud computing and network access services, allow dynamic resource allocation and virtual resource isolation. This trend can create a new paradigm of flexible pricing schemes. A simple pricing scheme is to allocate multiple isolated service classes with differentiated prices, namely Paris Metro Pricing (PMP). The benefits of PMP are its simplicity and applicability to a wide variety of general digital services, without considering specific performance guarantees for different service classes. The central issue of our study is whether PMP is economically viable, namely whether it will produce more profit for the service provider and whether it will achieve more social welfare. Prior studies had only considered specific models and arrived at conflicting conclusions. In this article, we identify unifying principles in a general setting and derive general sufficient conditions that can guarantee the viability of PMP. We further apply the results to analyze various examples of digital services.
Starting Page 1
Ending Page 21
Page Count 21
File Format PDF
ISSN 15335399
e-ISSN 15576051
DOI 10.1145/2663492
Volume Number 14
Issue Number 2-3
Journal ACM Transactions on Internet Technology (TOIT)
Language English
Publisher Association for Computing Machinery (ACM)
Publisher Date 2014-10-28
Publisher Place New York
Access Restriction One Nation One Subscription (ONOS)
Subject Keyword Internet economics Cloud computing services Pricing Service classes
Content Type Text
Resource Type Article
Subject Computer Networks and Communications
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